Question

Simone borrowed $13500 from the bank to purchase a used car. If the interest rate on this 72-month loan is 5.9%, how much will Simone pay in total back to the bank?

Answer 1

`$18279`

Explanation:

It appears that interest rate is per annum i.e. `$13,500` is paid after `72` months i.e. `6` years. Hence at `5.9%` interest is

`(13500×6×5.9)/100`

= `135×6×5.9=$4779`

and total amount payable is `13500+4779=$18279`